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Insiders who bought US$1.2m worth of Academy Sports and Outdoors, Inc. (NASDAQ:ASO) stock in the last year recovered part of their losses as the stock rose by 12% last week. However, total losses seen by insiders are still US$14k but in since the time of purchase.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
The Last 12 Months Of Insider Transactions At Academy Sports and Outdoors
Over the last year, we can see that the biggest insider purchase was by Chairman Kenneth Hicks for US$778k worth of shares, at about US$38.91 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$38.63). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
Happily, we note that in the last year insiders paid US$1.2m for 30.00k shares. But they sold 4.68k shares for US$202k. In the last twelve months there was more buying than selling by Academy Sports and Outdoors insiders. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Are Academy Sports and Outdoors Insiders Buying Or Selling?
There was only a small bit of insider buying, worth US$113, in the last three months. So it is hard to draw any conclusion about how insiders are feeling about the stock, from these recent trades.
Does Academy Sports and Outdoors Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Academy Sports and Outdoors insiders own 6.3% of the company, worth about US$208m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At Academy Sports and Outdoors Tell Us?
Our data shows a little insider buying, but no selling, in the last three months. Overall the buying isn't worth writing home about. However, our analysis of transactions over the last year is heartening. Judging from their transactions, and high insider ownership, Academy Sports and Outdoors insiders feel good about the company's future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. In terms of investment risks, we've identified 1 warning sign with Academy Sports and Outdoors and understanding it should be part of your investment process.
But note: Academy Sports and Outdoors may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.